Conventional loan on a duplex that needs new roof is needed

[Syl Rey]

Hi everyone, I currently have an offer accepted on a duplex. After a home inspection, I found that one of the roofs needs to be repaired in the next year or so. I’m told the bank won’t finance if the roof needs to be repaired so soon.  I was planning to get a conventional loan with 20% down.  We are seeing if the seller can fix the roof so that we can finance this property.  The asking price has gone down in the last week some more so I am willing to stay at our offer price if they fix the roof.  Because it’s a small 2 bedroom, I was told by the home inspector that someone can probably repair that one roof for $5K or less.  I don’t want to lose this deal so I wanted to ask for opinions/suggestions on what I can do if the seller refuses to fix the roof so that I can get a conventional loan. I do not have enough money for an all cash offer.  Has anyone ever repaired something while they were under contract in order to get financing- before closing? If so how did you structure that on the contract to ensure the sale goes through and you don’t lose out on the money you put down for the repairs?  I’d be willing to offer less on the property and do the repair myself if it was guaranteed that I would close on this property.

[Sarah Brown]

I agree with Elise.  I have never had a lender tell me that they won't finance the because the roof has less than 3 years.  I also never share the inspection with the lender.  That is just asking for problems.  I would see what you can work out with the seller to get it repaired.  Sometimes they are willing to pay for it.  I have also negotiated splits or increased pricing to cover upfront cost and reimburse at close (basically wraps it into the loan).